Frequently Asked Questions

How much can our Church/Christian Charity borrow?

Over how long can we borrow the money?

Can we borrow the money on interest only?

What is the interest rate charged by Church Mortgages Direct?

Do you have any special interest rates available?

Do you offer any fixed rate mortgages?

Why do you lend only to Churches, Christian Charities and Social Action projects?

When do you calculate interest?

What do I need to do to apply for a mortgage?

How much does it cost to apply?

We already own our building. Can we borrow money to redevelop?

We are going to construct our own new building. Can you help us with finance for this?

Why do you require us to have life insurance?

Who should we use as our Solicitor?

Can we pay back lump sums on the mortgage without any charges?

Why do you need a valuation report? How much will this cost?

Who can act as a referee for us?

Our church doesn’t have a deposit saved yet. Can you help us?

When our church buys the building we will be able to earn extra income from other activities (eg. lettings). Will you take this into account?

How much can our Church/Christian Charity borrow?

This depends on two factors: how much the organisation can afford; and the value of the property. You will need to provide an explanation and evidence of how you can meet the repayments. The property will need to be valued when you can use the table here to calculate the maximum mortgage.

Over how long can we borrow the money?

A term of up to 30 years is available but we realise that sometimes a shorter term is more appropriate. more

Can we borrow the money on interest only?

To fit in with the start up of your project we can allow interest only payments for a period of 2 years at the start of a mortgage. After that mortgage repayments of capital and interest will be required. more

What is the interest rate charged by Church Mortgages Direct?

This is published on our website here and is also available by calling us on 0115 921 7250.

Do you have any special interest rates available?

Customers will be offered either a Base Rate tracker rate or a managed variable rate depending on the risk associated with their mortgage.

Do you offer any fixed rate mortgages?

No, at present Church Mortgages Direct offers a variable rate to all customers.

Why do you lend only to Churches, Christian Charities and Social Action projects?

Church Mortgages Direct is a mission organisation with a heart for evangelism. Our heritage starts with a man who planted new Churches up and down the UK and saw the need to generate finance to provide buildings for those new congregations. more

When do you calculate interest?

We calculate interest annually on 1st January each year.

What do I need to do to apply for a mortgage?

To apply, you should contact us via the website here, by email or by phoning 0115 921 7250. We will need to see:

• Church/Charity’s Annual Accounts for the last three years

• Brief details of your proposed project

• Details of how the Church/Charity believes it will be able to afford the repayments

How much does it cost to apply?

It is free to make an enquiry and you will not need to pay any fees until we receive an application when we will ask you to pay a small non-refundable part of the Arrangement Fee. The total cost of a mortgage application consists of three aspects: the valuation of the property; the legal fees; and the arrangement fee paid to the Bank.

We already own our building. Can we borrow money to redevelop?

You can use our services whether you plan to Buy, Build, Extend or Develop a property. more

We are going to construct our own new building. Can you help us with finance for this?

At Church Mortgage Direct we can arrange stage payments to finance construction costs based on a forecast valuation of the property. With larger projects we will require warranties to be in place and will guide you through making arrangements for these.

Why do you require us to have life insurance?

When you are borrowing more than £50,000 and the organisation is led by one or more key people we will ask that assurance is taken over the life of the leader(s) sufficient to repay the mortgage. This means in the event of a fatal accident or unexpected death of the leader the organisation is able to clear the mortgage and take time to appoint a new leader without the fear of being unable to meet the mortgage repayments.

Who should we use as our Solicitor?

You are free to choose your own solicitor to act on your behalf. The Bank will appoint its own solicitor to oversee the transaction and you will be responsible for meeting the Banks solicitor’s fees. In some cases you may be able to use the same solicitor as the Bank to save on costs.

Can we pay back lump sums on the mortgage without any charges?

Yes. Recognising a principle of good stewardship we are pleased to encourage early repayment of a mortgage by allowing lump sum payments at any time. more

Why do you need a valuation report? How much will this cost?

To ensure the property is suitable as security we will ask you to arrange a valuation by an approved valuer. Please talk to us before arranging this and we will supply a list of valuers and an indication of the costs involved.

Who can act as a referee for us?

We ask for a referee who knows the Church or Charity well and is someone whom we also know, such as a denominational representative or another Church leader.

Our church doesn’t have a deposit saved yet. Can you help us?

Yes. We can help you plan and prepare for a project right from the first vision through to the completed building. You will normally need to provide a deposit but we can guide your through this process as well.

When our church buys the building we will be able to earn extra income from other activities (eg. lettings). Will you take this into account?

You will need to provide an explanation and evidence of how you can meet the repayments. This can include forecasting income from new activities and lettings of the premises. We will check these to ensure they are reasonable and you will be asked to provide evidence to support you plans. more

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